In business, there are two ways to improve the bottom line, either by 1) putting your assets to more productive use to improve the inflow of income or 2) reducing the outflow of expenses. In investing, to improve cash flow, you can either 1) find investments with the better returns for the cash you already have or 2) reduce your expenses to free up more cash for your current investments.
Unless you were born with a silver spoon in your mouth, it wasn’t easy to get to where you’re at financially and professionally. You had to work at it. Like many in your position, you got to where you’re at because you invested in yourself. First, you invested in your education by doing well in school. Then, you found a good job out of school and invested in your career by putting in the time to rise through the ranks, but here is why you’re reading this article today.
During the real estate boom ten years ago, much was made of all the seemingly new millionaires being made every day. Then when it all came crashing down in 2008, these millionaires were wiped out overnight. What happened? Being a millionaire should ensure financial security right? Wrong. It depends on the type of millionaire you are. There’s the net-worth millionaire and the cash-flow millionaire.